How to celebrate the 1st birthday party with only $500..any ideas? Help!  

My friend asked me to help her plan her daughters first birthday party with limited budget for it. I have converted it to dollars and its approximately around $500. Since its the first birthday of course I reminded her that it should be special thus it needs to be planned a few months before the big day. I have already asked around and have found a party planner who could include the following: a themed cake, balloon decorations, a host that does -balloon making/magician. The main concern for now is the venue since her house is not that big to accomodate people and for people to enjoy the party. Thus, I need suggestions to where we can have the party and other ways to decorate without having to spend much so that food can also be included with the budget. For me, the budget is way to low to celebrate a party but I have no choice but to go with what has been given to me.

Help! I am open to any suggestions!